Offshore staff
LONDON – Borders & Southern (B&S) says two technical projects have been completed concerning potential development of the deepwater Darwin gas/condensate discovery south of the Falkland Islands.
These were a reservoir engineering study and a facilities engineering study. Results are being used to assess the commerciality ofDarwin in the current low oil price, but relatively low cost market.
To date the company has evaluated full-field (Darwin East and Darwin West combined) and phased developments, either of which would involve subsea well completions tied back to a leased FPSO.
The field is in around 2,000 m (6,562 ft) of water, but 14 km (8.7 mi) to the south water depths decrease to 1,100 m (3,609 ft), opening the way to alternate engineering solutions.
B&S favors a phased development, initially targeting 270 MMbbl of condensate, with four production wells and three gas re-injectors, and an initial production rate of 56,000 b/d.
Estimates by engineering contractors suggest capex of $1.36 billion, based on which B&S foresees a breakeven oil price for development of $40/bbl.
This is due to a combination of attractive fiscal terms set by the Falkland Islands government, a high quality reservoir which does not require a large number of development wells, and a relatively straightforward development plan using proven technology.
09/26/2016
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